FICA Does Not Consider the First Six Months of Sick

question 65

True/False

FICA does not consider the first six months of sick pay as taxable wages.

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Definitions:

Puttable Bond

Puttable Bond is a type of bond that gives the holder the right to force the issuer to buy back the bond at a specified price before maturity.

Bondholder

A bondholder is an investor or entity that owns a bond issued by a borrower, entitling them to receive the bond's face value at maturity, along with periodic interest payments.

TIPS

Treasury Inflation-Protected Securities, which are U.S. government bonds that are indexed to inflation to protect investors from the negative effects of rising prices.

Coupon

The annual interest rate paid by a bond, expressed as a percentage of the face value, or the actual amount paid out to a bondholder annually.